From: hfinney@shell.portal.com (Hal Finney)
Date: Thu, 21 Oct 93 12:52:48 PDT
To: cypherpunks@toad.com
Subject: Re: backing
Message-ID: <9310211952.AA19206@jobe.shell.portal.com.shell.portal.com>
MIME-Version: 1.0
Content-Type: text/plain


Perry wrote:
> > A digital currency can be backed by gold held in some secure location
> > like the Zurich Free Transit Warehouse. U.S. Dollars are backed by
> > absolutely nothing other than blind faith in the U.S. Governement.
> > Who's kidding whom?

Banks are contractually obligated to turn over mortgage notes in exchange
for U.S. dollars.  These contracts are valid over approximately 30
years, and provide unencumbered title to valuable property.  These and
similar contracts may be said to give value to dollars independent of
government promises.

Hal